SOLUTION: Please help. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieve
Question 157524: Please help. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap?
The answer is 11.1%, but I don't know how to they got it? Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! The 72 pcs/hr that are produced are NOT scrap
If there is 10% scrap, then
90% x (production + scrap) = 72 pcs/hr pcs/hr
The percent increase in production is
or about 11.1%